Broadcast Advertising

Advertising Defined Non-personal CommunicationNon-personal Communication Usually paid forUsually paid for By an identified sponsorBy an identified sponsor Persuasive in naturePersuasive in nature About products, ideas or servicesAbout products, ideas or services Through various mediaThrough various media

Advertising in the Marketing Mix ProductProduct –Quality, package, appearance, etc. PricePrice –Deep discount to premium PlacePlace –Distribution channels PromotionPromotion –POP, personal selling, PR, Advertising

Advertising Classified By audienceBy audience –Consumer –Business to Business IndustrialIndustrial TradeTrade ProfessionalProfessional FarmFarm

Advertising Classified GeographicallyGeographically –National –Regional –Local –International

Advertising Classified By mediumBy medium –Electronic RadioRadio TelevisionTelevision CableCable InternetInternet

Advertising Classified PrintPrint –Newspaper –Magazine OutdoorOutdoor –Billboard –Transit

Advertising Classified SpecialtySpecialty –Novelties –POP –Product placement –Etc.

Advertising Classified By functionBy function –Product -vs- non-product –Commercial -vs- non-commercial –Direct action -vs- non-direct action

The advertising industry AgenciesAgencies The mediaThe media The advertisersThe advertisers The support services and suppliersThe support services and suppliers The regulatorsThe regulators The consumersThe consumers

Advertising History Functions of advertising:Functions of advertising: –Identify products and differentiate them –Communicate information about product –Induce consumers to try the product –Increase product usage –Build brand preference and loyalty

Advertising History Dates to 1600sDates to 1600s –British newspapers paid notices

Advertising History Ben Franklin is credited with introducing white space and illustrationsBen Franklin is credited with introducing white space and illustrations

Advertising History Magazines became first national mediumMagazines became first national medium Volney Palmer – first ad agency – 1841Volney Palmer – first ad agency – 1841 –Bought newspaper and magazine space in large volumes at discount. –Marked up 15% N. W. Ayer – first full service agencyN. W. Ayer – first full service agency

Broadcast Advertising History Out of the debate on how to pay for broadcasting came…Out of the debate on how to pay for broadcasting came… “Toll” broadcasting“Toll” broadcasting –WEAF –AT&T station “telephone philosophy of paying toll for long distance calls.“telephone philosophy of paying toll for long distance calls. First commercial broadcastFirst commercial broadcast time.com/commercials/1stcommercial.htmlhttp:// time.com/commercials/1stcommercial.htmlhttp:// time.com/commercials/1stcommercial.htmlhttp:// time.com/commercials/1stcommercial.html

Broadcast Advertising History Post WWIPost WWI –Radio grew –Lifestyles improved –Spending increased –Radio networks emerged –Advertising stressed the “Unique Selling Proposition”

Broadcast Advertising History Television explodes post WWIITelevision explodes post WWII –Radio programs shift to television –Radio adopts musical formats Advertising costs increaseAdvertising costs increase Sponsorships give way to participations or “spots”Sponsorships give way to participations or “spots” By the 1960s – advertising entered the “image era”By the 1960s – advertising entered the “image era”

Broadcast Advertising History Depicting a lifestyle – not product informationDepicting a lifestyle – not product information Emotional appeals – not logical appealsEmotional appeals – not logical appeals Remember the package – not the nameRemember the package – not the name Focus on benefits to consumerFocus on benefits to consumer

The contemporary advertising industry Complicated by the proliferation of mediaComplicated by the proliferation of media Audiences are splinteredAudiences are splintered –Narrowcasting Clutter and competitionClutter and competition High costs of media drive demand for researchHigh costs of media drive demand for research

Effects of advertising On pricesOn prices On competitionOn competition On product imageOn product image On demandOn demand –“Creating” demands? –Bran, fiber, carbs, cosmetics, vitamins, etc. –Slow a declining market – “repositioning”

Media strategy Buying patternsBuying patterns –Weekly cycles –Monthly cycles –Annual cycles –Seasonal products Products/service with fixed maximum capacitiesProducts/service with fixed maximum capacities

Media strategy